Bill of Lading (BoL)

What Is a Bill of Lading (BoL)?

A bill of lading (BoL) is a key shipping document issued by a carrier to acknowledge that the cargo has been received for shipment. It also serves as a binding contract and signifies the transfer of responsibility for the goods from the shipper to the carrier.

Functions of a BoL

• Receipt for goods: As evidence that the freight has been picked up by the carrier for shipment.

Types of BoL

Straight

A straight or non-negotiable BoL specifies a consignee to whom the goods are to be delivered, meaning that ownership cannot be transferred to another party during transit.

Order

This type of BoL offers flexibility in terms of ownership transferability. The goods are consigned to the shipper and marked “to order” indicating that ownership can be transferred via delivery of the original BoL and endorsement by the named party.

Bearer

This document is made out to the “bearer” of the original BoL, indicating that whoever holds it is the owner of the goods. Endorsement is not needed.

Multimodal/Combined Transport

This is a single transport document that covers the entire transit of goods across multiple transport modes, such as sea, air, rail, and road. It is issued by a multimodal transport operator (MTO).

Through

Similar to the above type, this is a single BoL covering the transport of goods across multiple carriers and modes of transportation. However, it is issued by a single carrier and further requires Ocean and Inland BoLs to cover different legs of the journey.

What to include on a BoL

• Shipper and consignee details: Names, addresses, and contact information of both the sender and receiver of the goods.

Legal bearing of a BoL

A BoL is a shipping contract between the consignor and the carrier. It establishes the rights and obligations of both parties and is enforceable under contract law.